Federated Farmers/Rabobank Farm Employee Remuneration Survey

Federated Farmers and Rabobank have released
the 2014 Farm Employee Remuneration Report in time for the
2014 National Agricultural Fieldays. This year’s report is
available to members online or in print and is also
presented in a new format for ease of use.

“This is our largest ever cross section
for the farm remuneration report and may help to dispel
assumptions about New Zealand’s leading export
industries.

“The recent People Powered report showed that
dairy will need 2,300 new workers between now and 2025,
while the arable sector will need 4,700 more workers by
2025.

“In 2025 the red meat and wool workforce is
expected to have shrunk by 5,100 roles but unskilled
positions are the most affected. The need for roles with
formal qualifications is actually expected to increase by
11,400 so there is plenty of opportunity.

“Given our
survey was in the field late 2013, the closest comparison to
those working outside the farmgate is StatisticsNZ’s median weekly earnings
for people in paid employment. In the year to June 2013, but
released last October, it returned median annual earnings of
$43,368.

“By comparison, we found the mean salary for
dairy workers was $46,017 for a mean 51 hour working week.
This translates into a mean hourly rate of $18.44 excluding
benefits. Accommodation was also provided for 77 percent of
the roles surveyed.

“For sheep and beef workers the mean
salary was $45,863. This was based on a mean 45 hour working
week translating into a higher mean hourly rate over dairy
of $20.67 excluding benefits. Accommodation was provided for
56 percent of the roles surveyed.

“We found the arable
sector generated the highest mean salary for pastoral
agriculture of $48,814. This was based on a mean 46 hour
working week returning a mean hourly rate of $20.99
excluding benefits. Benefits like accommodation were
provided for 44 percent of the arable roles we
surveyed.

“The 2014 report found the average length of
service in dairy was two years and four years in both arable
and sheep/beef sectors.

“Another fact that may dispel
assumptions is that the vast majority of our employees, 86
percent in fact, are New Zealand citizens. The proportion of
migrant labour was unsurprisingly highest in dairying at 14
percent but overwhelmingly Kiwis dominate.

“In light of
recent Ministry of Business Innovation and Employment
research into dairy employment practices, we can report a
gradual professionalisation of employment practices.

“We
found 87 percent of farm employers are using written
employment contracts versus 83.5 percent in 2013. In reality
this figure needs to be 100 percent because being deficient
here can put your business into employment law
quicksand.

“Half of the farms surveyed were using the
Federation’s industry standard contracts rising to 60
percent for full time positions. These contracts are tested,
proven and cost effective.

“It also needs to be noted
how low the cost is of these vital contracts and agreements.
The member price from 0800 FARMING for our standard
employment contract is just $60 while our new comprehensive
employment pack is just $120 plus GST of
course.

“Another thing to note is the mismatch of the
city based unemployed to where the rural jobs are. Given 35
percent of employers reported it as being ‘not at all
easy’ or ‘not very easy’ to find skilled or motivated
employees, this suggests urban people with the right
attitudes ought to be considering the primary
industries.

“Our report also highlighted farm worker
training as a topic which is in need of address by the wider
industry. With only a third of employers reporting that they
provided structured training opportunities for staff, there
is significant room for improvement in this area.

“While
this media release covers high level data the full report is
available to members as a free download that breaks data
down by position, level and region,” concluded Ms
Milne.

Non-members can purchase the report either
online at www.fedfarm.org.nz or by calling 0800
327 646.

Federated Farmers/Rabobank Farm
Employee Remuneration Survey 2014
HighlightsABOUT RABOBANK NEW
ZEALANDRabobank New Zealand is part of the
world’s leading food and agribusiness specialist bank,
Rabobank. As one of New Zealand’s largest rural
lenders, Rabobank plays an integral part and is a
significant provider of corporate financial services to the food
and agribusiness sectors in New Zealand. Rabobank's success
lies in its people and its structurewhich allows it to leverage its
expert knowledge and global strength to deliver superior client relationships and
value.ABOUT FEDERATED
FARMERSFederated Farmers’ origins date back
to 1899 and since that time it has been the strong advocate
for New Zealand farmers, acting on their behalf as well as
providing information that supports sustainable and
profitable farming. Farmers rely on sound qualified
information and this survey provides remuneration data for a
very important asset; the farm employees who help run the
farming operation.2014
REPORTThe full pdf version of the 2014 report
is available to members as a free download. To do this,
simply login to the Federation’s shop and
download. If member login details have been lost either use
the online recovery or call 0800 327 646 (0800 FARMING) for
advice. A superbly presented hard copy is available to
members for just $60+GST and to non-members for
$300+GST.

*An employee’s salary plus any
other benefits equals their total package value (eg, power,
food, internet, vehicle, training support, KiwiSaver,
bonuses etc). This table is illustrative only as the full
report details salary and TPV by occupation level and by
region. It further includes part time/causal data
too.

REPORT METHODOLOGYIpsos Ltd
operates a management system that complies with the
requirements of ISO20252. All members of Federated Farmers
were invited to participate in the survey either by email or
by sending a hard copy survey to their postal
address.

Research target group:The
research target group for this project were all Federated
Farmers members who have employees. In order to reach this
group, invitations to participate were sent to all members
of Federated Farmers.

Fieldwork
dates:The fieldwork was conducted between the
30th of October and 18th of December 2013. Some paper
surveys were received after this date, but have not been
included in the analysis. Overall response rate is 21
percent – this is based on anyone who started the survey
online or returned the paper questionnaire. Incidence rate
is 44 percent – this is the percentage of those who
qualified for (i.e. had staff members) and completed the
survey out of those who responded.

Data collection
method:Two methods were used to collect data
for this report: the first was an online questionnaire, and
the second, a hard copy questionnaire. Those who have
provided Federated Farmers with an email address were sent
an invitation to participate in the online version of the
survey. All other members were sent a hard copy version of
the questionnaire along with the invitation. The invitation
sent to members had the support of DairyNZ, Beef + Lamb NZ
and the Foundation for Arable Research. After the initial
email invitation was sent out to members, those who had not
yet completed the survey were sent two reminder emails to
encourage participation. Those with only postal addresses
received just one copy of the survey. Reminders were also
included in the Friday Flash newsletter. Data cleaning was
undertaken to ensure lack of ambiguity in the
data.

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